This is an accounting question. Chegg does not have a "taxation" subject, so "accounting" is the most accurate subject for this question.

Problem 18-27 (a) (LO. 1, 3) WhatIf1

Amil and Rebecca form Hyde Corporation with the following consideration:

		Consideration Transferred
		Basis to Transferor		Fair Market Value		Number of Shares Issued
From Amil
	Cash	$25,000		$25,000
	Installment note	80,000		215,000		2,400
From Rebecca
	Cash	60,000		60,000
	Building	300,000		400,000
	Land	31,000		40,000		5,000

Regarding these transactions, provide the following information:

If an amount is zero, enter "0".

a. Amil's recognized gain or loss is (#1)$________.

b. Amil's basis in the Hyde Corporation stock is (#2)$________.

c. Hyde Corporation's basis in the installment note is (#3)$________.

d. Rebecca's recognized gain or loss is (#4)$________.

e. Rebecca's basis in the Hyde Corporation stock is (#5)$________.

f. Hyde Corporation's basis in the building is (#6)$________. Its basis in the land is (#7)$________.

g. Would your answers to the preceding questions change if Amil received common stock and Rebecca received nonqualified preferred stock?

(#8)________[Yes/No]

h. Would your answers change if Rebecca was a partnership instead of an individual?

(#9)________[Yes/No], because there (#10)________[is a / is no] requirement that the transferors be individuals.

#1.

#2.

#3.

#4.

#5.

#6.

#7.

#8.

#9.

#10.